The Canada Climate Law Initiative (CCLI) acknowledges the Canadian Securities Administrators’ (CSA) recent update regarding their climate-related and diversity-related disclosure projects. We are deeply disappointed by their decision to stop work on sustainability-related disclosure requirements.

After more than three years of anticipation, this pause is a setback for Canada’s progress in corporate climate accountability. The announcement comes despite the Canadian Sustainability Standards Board (CSSB) releasing the country’s first-ever Canadian Sustainability Disclosure Standards in December 2024. These standards, while valuable, remain voluntary. Without decisive action from the CSA, widespread adoption by Canadian businesses will remain uncertain.

The CSA, the council of the securities regulators of Canada’s provinces and territories, should revise and finalize National Instrument Climate-related Matters (NI 51-107). This process is essential to ensure alignment with CSSB standards and to facilitate the adoption of NI 51-107 as a rule or regulation within each province and territory. It will also determine who will be required to comply and the timeline for implementation. The CSA’s April 23rd announcement halts this process indefinitely, leaving businesses and investors without clear direction.

While the CSA asserts that “securities legislation already requires issuers to disclose material climate-related risks”, the current disclosure legislation does not provide investors with sufficient information to assess, compare, and price climate and other sustainability risks and opportunities. This lack of transparency undermines informed decision-making and weakens Canada’s position in global markets and its ability to meet national climate targets.

At a time when Canada strives to strengthen relationships with the European Union and other international partners, this pause puts our economy at risk. Over 30 jurisdictions are adopting climate-related disclosures and improving corporate reporting standards. Canada’s failure to act jeopardizes investment and diminishes our competitiveness globally.

“Implementing a CSSB-aligned NI 51-107 would make Canadian markets more competitive, efficient, and resilient,” said Helen Tooze, Senior Policy Researcher with the Canada Climate Law Initiative.

Despite this setback, the Canada Climate Law Initiative remains committed to advancing sustainability disclosure in a way that supports Canadian markets. We will continue to engage with and support the CSA, the CSSB, and policymakers with legal research to ensure sound decision-making.

We urge the CSA to resume their work on climate-related disclosure for Canadian capital markets and provide the public with transparency on when they plan to revisit this project and finalize requirements for issuers.